Browse Forums General Discussion Re: Cost Plus Contracts - I hear bad things? 3May 11, 2017 5:20 pm The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Cost Plus Contracts - I hear bad things? 7May 11, 2017 8:21 pm Did a cost plus type build, end result was a huge saving, had a friend build a similar size home that was a nice home but a much easier build in the same area, we ended up been 100,000 less, but would of come in, 200,000 more if we had gone fixed, key was a really trust worthy builder project manager who really knew how to get best quality for less with me chipping in regularly with similar thoughts, this gave me the time to save up to 50 percent on many purchases, quality was always before price, so no compromise on quality despite this. Re: Cost Plus Contracts - I hear bad things? 8May 11, 2017 8:32 pm Thanks for your very detailed reply. Appreciate it I am actually self employed and run a small business, so to a degree - I know what is like managing people, managing trades, controlling costs and so on. I'm not a builder - never have been... but I understand peace of mind vs being hands on (fixed vs cost plus) I've spoken at length with builders and sure - everyone absolutely is after looking after themselves first - but a cost-plus contract doesn't seem that unreasonable too me if its fully costed and planned. The builder can still make a decent sum without the back end worries of a complicated project build. The owner gets the benefit of being able to perhaps negotiate with suppliers and save. I would expect no less than the builder costing this entire project - from start to finish - so we have a fair and reasonable idea of what it may cost and the builder I spoke with said he'd do that. To some degree - we've already done this... and I've had prices of $110k, 99k and $90k already for windows and again, fluctations already for Trusses and walls. I can already kind of see - with some diligance and persistence by asking questions and talking with a range of suppliers - I can potentially save money. The way I sort of see this is that the Builder is allowing say 20%... perhaps even more onto their margins. That's fair and needs to be lucrative... but they're also inflating it incase things do go wrong. Again, fair BUT and a big BUT... if things go write, its a great outcome for them. If i positively and optimistically look at it the same way - that things are planned and proceed and go RIGHT... then the stipend is for US... which we can reinvest into the house if need be. The thing is - I'm new and haven't built... so I don't know if this optimisim is naive. I was really hoping to hear from people that entered into Cost Plus contracts and how it worked out for them I'd be happy to have a chat with you I'm in the south east suburbs of Victoria FYI Re: Cost Plus Contracts - I hear bad things? 9May 11, 2017 8:34 pm Joker Did a cost plus type build, end result was a huge saving, had a friend build a similar size home that was a nice home but a much easier build in the same area, we ended up been 100,000 less, but would of come in, 200,000 more if we had gone fixed, key was a really trust worthy builder project manager who really knew how to get best quality for less with me chipping in regularly with similar thoughts, this gave me the time to save up to 50 percent on many purchases, quality was always before price, so no compromise on quality despite this. Great - thanks for your reply. This is how I am trying to see it... get a trust worthy builder and work hard to save money by making my own purchases. A fixed price might allocate $80sqm for tiles for examples - but I'm the sort of guy to look and shop and look and shop and find exactly what I want, hopefully for less. 1000000% definitely add insulation. I have in my home and it makes a big difference minimising sound transfer. Insulation is pretty cheap and definitely worth it 2 6283 We are building a house that was planned to be clad in Hardie Linea, our builder has now requested to swap this for BGC Nuline Plus. They look fairly similar and he has… 0 650 MBA and HIA both have sub contract agreements, check them out 2 7378 |